External and Internal Environments Research Paper - 4

External and Internal Environments - Research Paper Example Social and technological factors are the most important segments of the general environment affecting the fashion industry. Consumer factors like lifestyles, tastes and trends are the most critical within the fashion industry. For clothes to sell, companies ought to create designs that are in tandem with society’s preferences. Therefore, they need to study and analyze demands and patterns that exist at the time. This issue has affected Zara substantially because it has had to follow fashion trends closely during its entire period in operation. In order to stay in vogue, the company often sends a team of designers to fashion shows in Milan, London and New York. It also expects its team to read through fashion magazines, blogs, and other websites that discuss the latest trends. The organization also analyses daily sales data for all products sold in its retail stores. It liaises with buyers to determine what they might like to see within the stores. Therefore, it is a leading fashion retailer owing to its high awareness of consumer tastes and preferences (Crofton and Dopico, 2007). Technological factors also affect businesses in this industry tremendously. This may affect a company’s ability to get products to consumers quickly. Technology also introduces new sales models that may reduce brick and mortar sales. The growth of online selling has affected numerous organizations positively and Inditex is not an exception. It has used this opportunity to sell its products to individuals in relatively distant countries without having to invest in brick and mortar stores in those locations. Technology also facilitates rapid communication between customers and other fashion sellers thus making individuals more aware. Inditex’s business also depends on rapid gathering of information from its consumers. This has been possible due to the